The government of the Virgin Islands has welcomed the EU’s decision to name the British Virgin Islands (BVI) as a fully compliant jurisdiction for tax purposes.
BVI was placed on the EU’s Annexe ll ‘grey list’ while the EU monitored compliance in matters related to economic substance.
In order for the BVI to comply, the Economic Substance (companies and limited partnerships) Act was passed on the island in December 2018.
The BVI was also required to undertake further work to define appropriate substance requirements for collective investment vehicles.
Following a thorough process of assessment, monitoring and dialogue, the EU has removed BVI from its ‘grey list’.
Commenting on the outcome, premier and minister of finance, Andrew Fahie said: “I welcome the EU’s recognition that the BVI fully complies with its tax good governance principles. This is as a result of close cooperation and positive dialogue with the EU and demonstrates the BVI’s commitment to meeting and surpassing international standards.”
Fahie added: “I, along with my government, remain completely focused on ensuring the continued success of our international business and finance centre and its role in the global economy. We believe there will be significant opportunities for our territory and our people as we enhance our economic substance yet further.”
Elise Donovan, CEO of BVI Finance, said: “We warmly welcome the statement of the premier of the Virgin Islands that the EU has recognised us as a fully compliant jurisdiction for tax purposes. There has been a lot of work across the public and private sector to get to this important outcome and I wanted to thank all those involved for your engagement with this process.”
